The Competition Commission of India has imposed penalty on 50 LPG manufacturers for collusive bidding against Indian Oil Corporation tender. The CCI imposed the penalty of 7% of the total turnover of the company in the current year.

Indian Oil Corporation – IOCL

In a recent order, the commission said that these private manufacturers has quoted identical rates during the bidding process floated by IOC for supply of 105 lakh domestic LPG cylinders (14.2 kg) in 2010-11. Pankaj Gas Cylinders filed a case, according to which, there was a same pattern of bidding prices submitted by 50 gas bidding companies.

Competition Commission of India CCI

“On the basis of analysis of the bids, we have experienced that there was strong indication of some sort of agreement and understanding among bidders to manipulate the process of bidding,” the Commission noted. It has been noted that 63 companies were participated in the bidding process. Among them 50 bidders were qualified for opening price bids, 12 bidders were qualified as new vendors and 1 bidder was disqualified.